WASHINGTON – Federal officials announced Friday they have imposed financial penalties on 10 people and businesses accused of helping Iran’s armed forces acquire weapons and materials needed to manufacture Shahed drones.
The Treasury Department’s action targets several entities located in China and Hong Kong that allegedly assisted Tehran’s military procurement efforts. The sanctions were revealed just days ahead of President Donald Trump’s planned trip to China for discussions with President Xi Jinping, while diplomatic initiatives to resolve the Iranian conflict remain at an impasse.
Treasury officials stated their commitment to continued economic measures against Iran’s defense manufacturing infrastructure to prevent Tehran from rebuilding its production capabilities and extending its influence beyond Iranian borders.
The department also warned it stands ready to take action against any international companies supporting illegal Iranian trade operations, including aviation firms, and may apply secondary sanctions to foreign banks that facilitate Iran’s activities, particularly those linked to China’s smaller independent oil refineries.
“Under President Trump’s decisive leadership, we will continue to act to Keep America Safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent stated.
